Purchase orders Less than $1,000.00:
Purchase Orders $1,000.00 and Over:
All invoices to be paid on a blanket order must include the following:
If any of this information is not included, the invoice will be returned to the department for completion.
Please do not hesitate to call Accounts Payable at 7-2371 if you have questions.
After processing a purchase order to buy supplies, services, equipment or other capital assets, (see purchasing's web site) a receiver/cream copy of the PO is sent to the department for those orders of $1,000 or more. Upon receipt of the goods and/or services, the department should examine the goods and/or services to ensure they were received/rendered in an acceptable manner.
If satisfied after inspection, the department must include the following on the receiver and send it to Accounts Payable:
If all goods/services have been received, the department can indicate "Complete" on the receiver rather than entering quantities of every item and forward the receiver/cream to Accounts Payable.
If partial shipments are received, the department should:
Accounts Payable will then return the original receiver/cream copy to the department for completion upon receipt of the remaining items/services.
The purchase order directs the vendor to send invoices to Accounts Payable. Vendor invoices should include:
If the department receives an invoice from the vendor directly, it must be sent to Accounts Payable immediately so prompt payment can be made. If a receiver has not been returned to accounts payable, the invoice should have an authorized signature indicating payment can be made and the purchase order number, if it is not provided by the vendor. Late fees may be charged to the department for late invoices.
Upon receipt of an invoice, it is matched to the purchase order. If there are no discrepancies, the invoice is set up for payment within any terms indicated on the invoice or within 30 days if there are no terms indicated. The University does take advantage of discounts when possible to realize cost savings. If payment terms have been agreed upon by the vendor and department for major equipment purchases (i.e. computer systems), please inform accounts payable of such circumstances.
Price and/or quantity discrepancies are generally approved by the purchasing buyer prior to payment.
Purchase Orders which are less than $1000 have a negative receiver process. Accounts Payable will automatically pay these orders without approval or receivers from the department. The receiving department should inspect the goods/services to be sure they are delivered in an acceptable manner.
Vendor invoices should include:
Blanket Order Invoices
A blanket order is issued to purchase expendable items from a single vendor over a certain period of time, often being the fiscal year. Items are purchased under one purchase order rather than processing separate orders each time supplies are needed. Equipment cannot be purchased on blanket orders.
All blanket purchase orders must include names of individuals who are authorized to purchase items. Blanket order invoices are charged to various accounts and are not encumbered.
The department is responsible for indicating the index, account code, blanket order number and authorizing signature. Accounts Payable will return invoices to the department if any of this information is missing which will delay payment and may result in late fees/service charges being charged to the department.
If a purchase is not made locally, invoices may be sent to the department or to Accounts Payable. If the department receives the invoice, the above procedure should be followed. If the invoice is received by Accounts Payable, the invoice will be forwarded to the department for the index, account code, blanket order number and authorized signature.
MTU - Accounting Services
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This page created by Bryon Freeman.